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No that isn't what the 1st A protects against. It protects the state from proclaiming an official state religion. That's not.what giving funding to a faith based orphanage is.That's precisely the problem with this - they are operating as an arm of the State and being funded by Jewish, Muslim and Atheist taxpayers. That is precisely what the First Amendment was crafted to prevent.
What im more interested in knowing is if the children have a choice to be placed in other orphanages if they are against being placed in a Christian environment. I think that would be a bigger problem than denying some couple the ability to adopt because they are Jewish.